There is a hotly debated discussion unfolding on Amazon right now over the pricing of the iPad Mini. As you know, you can go to Apple.com and order the 16GB iPad Mini (WiFi model only) for only $329 with an estimated shipping time of 1 week. The problem is, on Amazon you can buy the iPad Mini from 3rd party sellers right now for $399, which is $70 more than Apple’s starting price for the iPad Mini.
So what’s the incentive to pay $70 more for a new iPad Mini? It’s because on Amazon you can get the iPad Mini shipped in 1 – 2 days, again compared to Apple’s 1 week shipping date estimate.
The disparity in pricing between Amazon and Apple has caused some to believe that Amazon is allowing price gouging of the iPad Mini. After all, why increase the price by $70 above Apple’s price? It makes no sense… that is, unless you are someone who’s willing to pay a premium for the 1 – 2 day shipping.
SEE MORE: iPad Mini for $399, 1 – 2 days shipping
What some people are calling “price gouging”, others are calling simple economics. After all, isn’t pricing ultimately decided by the market as a function of supply and demand? Right now, there’s a whole lot more demand for the iPad Mini than supply. So prices increasing on Amazon by $70 in order to get faster shipping should be, according to economics, a natural evolution in the pricing market scheme… right?
Call it what you will, but the 3rd party vendors are selling their higher priced iPad Mini because customers are willing to pay more for faster shipping. It’s a product that’s meeting customer demand, and so long as people are willing to pay the higher price for the iPad Mini, and so long as Apple continues to lag in the shipping times, I dare say the price could very well increase even more from the 20 premium on Amazon.
But what do you think? Is Amazon allowing price gouging, or is this nothing more than simple economics at work?
Let us know your thoughts in the comments below.